Exit Planning Advice By Market
Selling an Actuary Business
No one said selling your business in a depressed economy would be easy. But selling your actuary business doesn't have to be as daunting as it sounds.
Business-for-sale markets are less dependent on economic conditions than most sellers think they are.
There is no simple way to sell a business. But the most prepared actuary business sellers are achieving fair market value and more for their companies through persistence and the application of sound selling techniques.
Realistic Expectations
Emotions run high during the sale of an actuary business. Sellers typically overvalue their companies compared to the rest of the marketplace. In our experience, the most successful sales are ones in which the seller has made an intentional effort to remain objective and set realistic expectations. Consider recruiting a team of objective professionals to help manage your expectations as you prepare and negotiate the sale of your business.
Brokerage Benefits
A good broker can offer several benefits to business sellers. Right out of the gate, brokers know how to help their clients properly prepare their businesses for a sale. Second, a good business broker is a master at confidentiality locating actuary business sale prospects and guiding sellers through negotiations. Typical brokerage rates (a.k.a. success fees) run 10% of the final price - an expense that is usually recouped through a higher sales price and less time on the market.
Selling to a Family Member
The idea of passing a business along to a family member sounds idyllic to many business owners. in reality, a family-based actuary business sale can be more complicated than selling to a stranger. Often, a sale to a family member creates fractures within the family. Whether you offer the family member special concessions or not, either the buyer or other family members may take offense. If possible, discuss a long-term, generational transition with the entire family and seek the advice of a professional consultant.
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